Legislative, contract
efforts deliver pension COLA, tier reforms, more
Hard work hatches bigger nest eggsBy SHERRY HALBROOK
Maybe Jiminy Cricket is right. PEF members dreams
of a more fair and equitable tier and pension system
really are coming true this year as the state Legislature
passed a torrent of pension and other key legislation
that will benefit PEF members and retirees.
We thought they would pass something on pensions
this year, but no one thought they would go this far. I
dont think most PEF members fully grasp yet just
how big this is, said PEF Legislative Director
Brian Curran. We finally got things from the
Legislature that weve been trying to get for 20
years.
Theres something for just about everyone if the
governor signs it all into law. Retirees get an annual
pension boost to help offset inflation.
If the PS&T contract is ratified, members in Tiers 1
and 2 will get a boost in service credits toward
retirement and the burden of contributions to the pension
system will be lifted from the backs of long-term members
in Tiers 3 and 4.
Veterans get a break on the price of buying service
credits.
Nurses get safer needles and job protection for blowing
the whistle on shortfalls in patient care.
Other legislation was passed or rejected to benefit
members in parole and mental-health services.
But it wasnt just wishing on stars that made it all
happen.
It was the culmination of years of painstaking efforts by
PEF on many legislative and political fronts that
positioned the unions issues to take advantage of
mounting political pressure and budget surpluses this
year, according to Curran and PEF Vice President Ken
Brynien.
In many cases, we started working on the
legislation years ago, Brynien said.
Sometimes we were all alone in the beginning, but
gradually we built a small coalition of support and then
those coalitions grew bigger and bigger.
While PEF leaders, legislative staff, political activists
and division and labor-management activists worked
together to define the unions positions, draft
legislation and build support for it, the union was at
work on other fronts, too.
We have dramatically increased our emphasis on
political action in recent years. That increase in
political action was an important factor in why we were
able to take advantage of the opportunity this year to
make so many things happen, Brynien said.
We tremendously increased the amount of money we
put into political contributions, we increased our direct
involvement in political campaigns and we increased the
amount of contact our PAC PALs (political liaisons) have
with legislators on the issues, Brynien said.
Weve also been building stronger, more
effective legislative coalitions with our international
unions and the AFL-CIO, he added.
Its great to see it all paying off, at last.
Bills passed, awaiting gov.s
signature
COLA
(S8180/A11460)
This bill provides retired public employees with a
permanent and automatic cost-of-living adjustment to
their pensions. Pensions will increase each year at half
the rate of inflation as measured by the Consumer Price
Index (CPI). Pensions will go up at least 1 percent, but
not more than 3 percent per year. The increase will apply
only to the first $18,000 of the pension benefit.
The increase applies to:
retirees age 62 and older who have been retired
for at least five years; and to
retirees ages 55-61 who have been retired for at
least 10 years.
Also, beginning September 1, 2000, all retired members
who have retired prior to 1997 will be paid an adjusted
benefit in monthly installments. This one-time catch-up
provides a supplemental payment equal to 50 percent of
the CPI from the members year of retirement through
1997.
Members who retired in 1997 or later, if they meet
eligibility requirements for age and years retired, will
receive their first annual COLA in September, 2001.
This bill still needs to be signed into law by the
governor.
Tier Equity
(S8130/A11415) Early-retirement
penalties for public employees in pension Tiers 3 and 4
are reduced to the level of penalty for early retirement
under Tier 2.
The penalty for early retirement by employees in Tiers 3
and 4 has been as high as 38 percent depending on
individual circumstances. Whereas, the maximum penalty in
Tier 2 has been 27 percent.
Benefit
Enhancements (S8142/A11418) This legislation, which will apply to
PS&T and Roswell Park employees only if they ratify
the tentative collective-bargaining agreement, eliminates
3 percent employee pension contributions for members of
Tiers 3 & 4 after 10 years of membership in the
retirement system.
It also provides one additional month of service for
every year of service at a maximum of two years
additional credited service for employees in Tiers 1 and
2.
Prior Service
Credit (S8129/A11416) Members of a public-retirement system can
receive credit for prior service if that service would
have been creditable in a public-retirement system.
The waiting period for receiving that credit is reduced
from five years after returning to public employment to
two years.
Veterans
Buyback Bill (S8101/A11380) The cost to veterans, who are members of
public retirement systems, of buying up to three years of
retirement credit for military duty performed during
specified periods is reduced to 3 percent of current
salary for each year of service that is purchased.
Death Benefits
(S8131/A11414) Certain
death benefits will apply to all new members of a public
retirement system. Coverage will be by the most
advantageous death-benefit option.
Sharps Safety
Act (S4936/A7144B) Health-care facilities must use safer
needles and sharp instruments to prevent accidental
spread of blood-borne diseases.
Whistleblower
(S1453/A3089)
Employers are barred from retaliating against health-care
employees who blow the whistle on unsafe health
practices.
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